[AccessD] Rates: For-Profit vs. Non-Profit

John Bartow jbartow at earthlink.net
Thu Mar 6 09:21:00 CST 2003


Rates: For-Profit vs. Non-ProfitThis is what I was told to do 4 years ago by
my accountant. I spell it out up front and tell the client that because I
work for a service corporation that I can't deduct my services as a
donation - give them a shoulder shrug and tell them it would be easier for
me if I could but that's the tax law. They are usually glad to hear it. If
they aren't they apparently don't need my services. There are plenty of
non-profit orgs in the world that will be appreciative.

Good Luck,
JB
  -----Original Message-----
  From: accessd-admin at databaseadvisors.com
[mailto:accessd-admin at databaseadvisors.com]On Behalf Of Jim DeMarco
  Sent: Thursday, March 06, 2003 7:22 AM
  To: accessd at databaseadvisors.com
  Subject: RE: [AccessD] Rates: For-Profit vs. Non-Profit


  >>then mark as much as half of it as a donation or in-kind service<<

  You can do it this way but note this:
  I did bill a non-profit at full rate minus a deduction for donation and
could not claim it as as deduction on my taxes.  I was told I had to bill in
full, receive payment, and make the donation after the fact (which I don't
think would have worked for the organization).  I used that discount to land
the job thinking I could recoup a bit on taxes :-(

  Moral of story: Check with your accountant first.

  Jim DeMarco
    -----Original Message-----
    From: William Hindman [mailto:wdhindman at bellsouth.net]
    Sent: Tuesday, March 04, 2003 3:37 PM
    To: accessd at databaseadvisors.com
    Subject: Re: [AccessD] Rates: For-Profit vs. Non-Profit


    Dan

    ...I bill my normal full rate ...and then mark as much as half of it as
a donation or in-kind service, whatever makes their accountants happy.

    ...billing full rate on paper keeps the value of your work in front of
them and doesn't result in low ball references to others which tend to take
your options away.

    ...billing at full rate and then donating half may also result in tax
advantages for both of you depending upon how you're structured and how much
is involved.

    ...nonprofits often are recipients of grants which match funds raised
elsewhere and may well use your donation as part of their offset while
taking advantage of your billing price to boost their expenses for both
taxes and fundraising purposes.

    ...talk it over with the nonprofit's money man and you may well help
yourself as well as them.

    William Hindman
      ----- Original Message -----
      From: Dan Waters
      To: accessd at databaseadvisors.com
      Sent: Tuesday, March 04, 2003 3:24 PM
      Subject: [AccessD] Rates: For-Profit vs. Non-Profit


      Folks,

      I know that sometimes people will provide a lower rate to a non-profit
organization, particularly if you believe in what they are doing.  I may get
some work from a Non-Profit soon, and I was wondering if anyone has a
general rule of thumb about how you reduce your normal rate, or how you
might charge differently.  Also, are there any tax implications that you
know of?

      Thanks,
      Dan Waters
      Quality Process Solutions




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